KINGSLEY INDUSTRY TRENDS
>> Office Q3 2011
Kingsley Associates Releases Third Quarter Office Industry Trends
FOR IMMEDIATE RELEASE
Tenant Loyalty Strongest Since 2008
(SAN FRANCISCO–October 27, 2011) More than 61 percent of tenants in U.S. office buildings intend to renew their leases, according to Kingsley Associates' Q3 2011 Office Industry Trends. During the four quarters ending September 30, 2011, 61.3 percent of tenants indicated that they "definitely" or "probably" would renew, the highest level of loyalty since 61.9 percent in Q4 2008. Furthermore, 64.8 percent of tenants reported either "good" or "excellent" value for the amount paid, up from 63.9 percent last quarter.
Other signs hint at a strengthening office market. Nearly 15 percent (14.9) of tenants anticipate the need for more space, an increase of 2.8 percentage points since Q4 of 2009, the recent low. Furthermore, 37.8 percent of tenants expect to add headcount at their location.
"Office users have taken advantage of favorable rates and are generally happy with their space," comments Jim Woidat, principal, Kingsley Associates' San Francisco office. "Now that the economy has stabilized somewhat, there are indications they are ready to start hiring again."
Boston is a leader among major U.S. markets in both future space needs (15.8 percent of tenants indicating the need for more space) and anticipated headcount growth (41.7 percent of tenants expecting to add headcount). Boston is also one of the few markets where more tenants are placing value on green buildings practices. Nationally, the proportion of tenants indicating that green practices are "very" or "somewhat" important to them fell below 59 percent (58.6) for the first time in three years. But in Boston, it rose to 62.2 percent, up from 60.3 percent last quarter. These and other findings are available in Kingsley Associates' Q3 2011 Office Trends.
Kingsley Associates surveys office tenants representing nearly 1 billion square feet annually on behalf of its clients. The findings outlined above are based on survey responses received between October 1, 2010 and September 30, 2011.
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The most successful firms in real estate rely on Kingsley Associates for cutting-edge business intelligence solutions. With a depth and breadth of insight unmatched in the industry, Kingsley Associates brings thought leadership and passionate client service to every engagement. Kingsley Associates is a leader in tenant satisfaction surveys, resident satisfaction surveys, client perception studies, strategic consulting and operations benchmarking. To learn more, please visit our Website www.kingsleyassociates.com or our blog www.kingsleyinsight.com.
Contact:
Peggy Robinson
Vice President of Marketing
Kingsley Associates
probinson@kingsleyassociates.com or (770) 908-1220
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